well it depends on the question
Sometimes Question clearly states that Issuance cost of debt is This
other times you have to segregate it from the total cost of issuance by some percentage basis given by the examiner.
reading question scenario is very important becoz a slight mistake will result in change of approach and loss of marks! and one cant afford losing easy marks in P4!
It depends on whether the amount of debt given is gross of issue costs or net of issue costs! for exmple if 100,000 debt is gross of issue costs than issue cost will be 2040.8 and if it is net of issue cost than issue cost will be 2000,, and dont forget to take into account tax effect because after tax issue is the one that a company bears in actual and is relevent for appraisal purposes!